The form 1099-S Proceeds From Real Estate Transactions - http://www.irs.gov/pub/irs-pdf/f1099s.pdf which reports the total amount you received from the sale.
The person responsible for closing a real estate transaction must report the real estate proceeds to the Internal Revenue Service and must furnish this statement to you - that is why you received that form.
There is no any special treatment for this form.
Reporting requirements are based on the type of transaction. If you sold you primary home and qualify to exclude the gain - you do not need to report anything on your tax return.
If you realized the capital gain/loss - you need to report transaction on the Schedule D Capital Gains and Losses.
If the real estate was a business property - the transaction should be reported on Form 4797, Sales of Business Property; etc
The amount on the form 1099-S reports the sale price - it may not be added to the basis.
The basis is mainly your purchase price - assuming the property was purchased.
The basis should be adjusted by purchase expenses, expenses to obtain the mortgage and refinance, improvement expenses, etc.
If you are the seller - the gain would be calculated as (selling price) - (basis)
Selling price should be reported on the schedule D - in your situation - it is 289,000. It seems as 1099-S reports only part of that amount - and it is not clear for me why - I would only suggest to ask for clarification from his attorney who issued the form.
As the determination of the basis is critical for tax reporting - and the property was purchased - that is a purchase price $158,000.
The basis should be adjusted by any purchase and selling expenses, expenses to obtain the mortgage and refinance, improvement expenses, etc - that is very important because of taxable gain would be affected by the correct determination of the adjusted basis.
It seems that amount - $67,000 - was not received - so it was likely paid for some services. If $67,000 in question - are related to any expenses that may be included into the basis - that may not be determined based on information provided.